WNS (Holdings) Limited (WNS) (NYSE: WNS), a leading provider of global
business process outsourcing (BPO) services, today announced results for
the 2013 fiscal third quarter ended December 31, 2012.

Highlights:

GAAP Financials

Revenue of $120.2 million, up 2.5% from $117.2 million in Q3 of
last year and up 6.3% from $113.1 million last quarter

Profit of $6.1 million, compared to $4.0 million in Q3 of last year
and $4.3 million last quarter

Diluted earnings per ADS of $0.12, compared to $0.09 in Q3 of last
year and $0.08 last quarter

Non-GAAP Financial Measures*

Revenue less repair payments of $113.5 million, up 16.8% from $97.2
million in Q3 of last year and up 5.8% from $107.3 million last quarter

Adjusted Net Income (ANI) of $14.0 million, compared to $12.1
million in Q3 of last year and $12.2 million last quarter

Adjusted diluted earnings per ADS of $0.27, compared to $0.27 in Q3
of last year and $0.24 last quarter

Operations Update

Added 9 new clients in the quarter, expanded 8 existing
relationships

Days sales outstanding (DSO) at 32 days

Global headcount of 25,931 as of December 31, 2012

Reconciliations of the non-GAAP financial measures discussed below to
our GAAP operating results are included at the end of this release. See
also “About Non-GAAP Financial Measures.”

Revenue less repair payments* of $113.5 million in the third quarter
increased 16.8% year-over-year, and 5.8% as compared to the previous
quarter. Year-over-year, revenue improvement was broad-based and driven
by growth in the Retail & CPG, Insurance, Utilities and Travel
verticals. Sequential revenue growth was also broad-based, with
particular strength in the Retail & CPG, Insurance and Utilities
verticals. As a result of several new project starts during the quarter,
transition revenues increased approximately $2.0 million versus last
quarter and Q3 of the prior year. Transition revenues typically carry
lower margins, as they include start-up costs associated with travel and
training. Project margins expand as transition completes and the
engagement moves into steady-state.

Adjusted gross margin* for the quarter was 34.7%, as compared to 36.3%
in Q3 of last year, and 35.5% reported last quarter. On a year-over-year
basis, gross margin declined as a result of infrastructure investments
and transition costs associated with new project ramps, which were
partially offset by higher revenue and depreciation in the Indian rupee
versus the US dollar. Sequentially, gross margins declined as a result
of reduced seat utilization and transition costs, which were partially
offset by volume increases and productivity improvements. Third quarter
adjusted operating margin* was 13.9%, as compared to 16.7% in Q3 of last
year and 13.7% reported in the second quarter. Year-over-year, the
reduction in adjusted operating margin* is the result of infrastructure
expansion, project transition costs and integration costs associated
with the acquisition of Fusion Outsourcing. Currency favorability and
operating leverage associated with higher revenue partially offset these
costs. Sequentially, adjusted operating margin* improved as higher
revenue volumes and improved productivity more than offset reduced seat
utilization and transition costs associated with new project ramps.

Adjusted net income (ANI)* in the third quarter was $14.0 million, up
$1.8 million as compared to Q3 of last year, and also up $1.8 million
from the previous quarter. On a year-over-year basis, revenue growth,
increased income on higher cash balances and a lower effective tax rate
were partially offset by the reduced adjusted operating margin*
percentage discussed above. Sequentially, the increase in ANI* was a
result of higher revenue and improvement in the adjusted operating
margin* percentage.

From a balance sheet perspective, WNS ended the fiscal third quarter
with $86.3 million in cash and marketable securities and $84.6 million
of gross debt. The company generated $25.8 million in cash from
operations, and capital expenditures for the quarter came in at $5.8
million. Days sales outstanding were 32 days, representing a reduction
from 36 days in Q3 of last year and 38 days last quarter.

“We are pleased with the top line progress made during the quarter, as
revenue was positively impacted by the start of several new projects and
broad-based growth across verticals, services and geographies. While
some of this new project revenue came with higher costs in the short
term, we are confident that as the processes and relationships mature,
our margins will expand. At a macro level, overall demand for BPO
services remains stable and healthy as we enter calendar 2013,” said
Keshav Murugesh, WNS’s Chief Executive Officer.

“We believe that we are making the proper investments to ensure WNS is
well positioned in the growing and evolving BPO industry. These include
our initiatives in the areas of geographic expansion, domain expertise,
new service offerings and technology-enablement. We must focus on
leveraging these investments and enabling our teams to add new logos,
expand our existing relationships and drive increased value to our
clients. We believe successful execution on these plans will result in
continued revenue traction and margin improvement.”

Fiscal 2013 Guidance

WNS has updated guidance for the fiscal year ending March 31, 2013 as
follows:

Revenue less repair payments* is expected to be between $437 million
and $439 million. This assumes an average GBP to USD exchange rate of
1.61 for the remainder of fiscal 2013.

ANI* is expected to range between $52 million and $54 million. This
assumes an average USD to INR exchange rate of 54.5 for the remainder
of fiscal 2013.

“The updated fiscal 2013 guidance is based on current visibility levels
and exchange rates. Guidance for the year reflects top line growth of
approximately 11%, with over 99% visibility to the midpoint of the
range. We will continue to focus on growing revenue and improving
operating margin in the fourth quarter and beyond,” said Deepak Sogani,
WNS’s Chief Financial Officer.

Conference Call

WNS will host a conference call on January 16, 2013 at 8:00 am (Eastern)
to discuss the company's quarterly results. To participate in the call,
please use the following details: +1-800-901-5213; international dial-in
+1-617-786-2962; participant passcode 31346857. A replay will be
available for one week following the call at +1-888-286-8010;
international dial-in +1-617-801-6888; passcode 68484085, as well as on
the WNS website, www.wns.com,
beginning two hours after the end of the call.

About WNS

WNS (Holdings) Limited (NYSE: WNS) is a leading global business process
outsourcing company. WNS offers business value to 200+ global clients by
combining operational excellence with deep domain expertise in key
industry verticals including Travel, Insurance, Banking and Financial
Services, Manufacturing, Retail and Consumer Packaged Goods, Shipping
and Logistics and Healthcare and Utilities. WNS delivers an entire
spectrum of business process outsourcing services such as finance and
accounting, customer care, technology solutions, research and analytics
and industry specific back office and front office processes. As of
December 31, 2012, WNS had 25,931 professionals across 31 delivery
centers worldwide including Costa Rica, India, Philippines, Poland,
Romania, South Africa, Sri Lanka, United Kingdom and the United States.
For more information, visit www.wns.com.

Safe Harbor Statement

This release contains forward-looking statements, as defined in the safe
harbor provisions of the US Private Securities Litigation Reform Act of
1995. These forward-looking statements are based on our current
expectations and assumptions about our Company and our industry.
Generally, these forward-looking statements may be identified by the use
of terminology such as “anticipate,” “believe,” “estimate,” “expect,”
“intend,” “will,” “seek,” “should” and similar expressions. These
statements include, among other things, the discussions of our strategic
initiatives and the expected resulting benefits, our growth
opportunities, industry environment, expectations concerning our future
financial performance and growth potential, including our fiscal 2013
guidance and future profitability, and expected foreign currency
exchange rates. Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially from
those expressed or implied by such statements. Such risks and
uncertainties include but are not limited to Fusion’s volume of
business; our ability to successfully integrate Fusion’s business
operations with ours; our ability to successfully leverage Fusion’s
assets to grow our revenue, expand our service offerings and market
share and achieve accretive benefits from our acquisition of Fusion;
worldwide economic and business conditions; political or economic
instability in the jurisdictions where we have operations; regulatory,
legislative and judicial developments; our ability to attract and retain
clients; technological innovation; telecommunications or technology
disruptions; future regulatory actions and conditions in our operating
areas; our dependence on a limited number of clients in a limited number
of industries; our ability to expand our business or effectively manage
growth; our ability to hire and retain enough sufficiently trained
employees to support our operations; negative public reaction in the US
or the UK to offshore outsourcing; the effects of our different pricing
strategies or those of our competitors; and increasing competition in
the BPO industry. These and other factors are more fully discussed in
our most recent annual report on Form 20-F and subsequent reports on
Form 6-K filed with or furnished to the US Securities and Exchange
Commission (SEC) which are available at www.sec.gov.
We caution you not to place undue reliance on any forward-looking
statements. Except as required by law, we do not undertake to update any
forward-looking statements to reflect future events or circumstances.

References to “$” and “USD” refer to the United States dollars, the
legal currency of the United States; references to “GBP” refer to the
British Pound, the legal currency of Britain; and references to “INR”
refer to Indian Rupees, the legal currency of India. References to GAAP
refers to International Financial Reporting Standards, as issued by the
International Accounting Standards Board (IFRS).

* See “About Non-GAAP Financial Measures” and the reconciliations of the
historical non-GAAP financial measures to our GAAP operating results at
the end of this release.

About Non-GAAP Financial Measures

The financial information in this release is focused on non-GAAP
financial measures as we believe that they reflect more accurately our
operating performance. Reconciliations of these non-GAAP financial
measures to our GAAP operating results are included below. A discussion
of our GAAP measures are contained in “Part I –Item 5. Operating and
Financial Review and Prospects” accompanying our fiscal 2012 financial
statements submitted to the SEC under our annual report on Form 20-F
filed with the SEC on April 26, 2012.

For financial statement reporting purposes, WNS has two reportable
segments: WNS Global BPO and WNS Auto Claims BPO. Revenue less repair
payments is a non-GAAP financial measure that is calculated as (a)
revenue less (b) in the auto claims business, payments to repair centers
(1) for “fault” repair cases where WNS acts as the principal in its
dealings with the third party repair centers and its clients and (2) for
“non-fault” repair cases with respect to one client to whom WNS provides
services similar to its “fault” repair cases. WNS believes that revenue
less repair payments for “fault” repairs reflects more accurately the
value addition of the business process outsourcing services that it
directly provides to its clients. For more details, please see the
discussion in “Part I – Item 5. Operating and Financial Review and
Prospects – Overview” in our annual report on Form 20-F filed with the
SEC on April 26, 2012.

WNS also presents (1) adjusted gross margin, which refers to adjusted
gross profit (calculated as gross profit excluding share-based
compensation expense) as a percentage of revenue less repair payments,
(2) adjusted operating margin, which refers to adjusted operating profit
(calculated as operating profit excluding amortization of intangible
assets and share-based compensation expense) as a percentage of revenue
less repair payments, and (3) ANI, which is calculated as profit
excluding amortization of intangible assets and share-based compensation
expense, and other non-GAAP measures included in this release as
supplemental measures of its performance. WNS presents these non-GAAP
measures because it believes they assist investors in comparing its
performance across reporting periods on a consistent basis by excluding
items that it does not believe are indicative of its core operating
performance. In addition, it uses these non-GAAP measures (i) as a
factor in evaluating management’s performance when determining incentive
compensation and (ii) to evaluate the effectiveness of its business
strategies. These non-GAAP measures are not meant to be considered in
isolation or as a substitute for WNS’s financial results prepared in
accordance with IFRS.

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